Common use of Preparation and Approval Clause in Contracts

Preparation and Approval. Manager shall submit an interim operating budget for the first Fiscal Year within thirty (30) days after the Effective Date, with such interim operating budget to include a cash forecast and Manager’s estimate of the Gross Revenues and Expenses and Permitted Deductions of the Project for the first Fiscal Year. Manager will submit the Annual Plan for each Fiscal Year after the first Fiscal Year at least forty-five (45) days prior to the beginning of each such Fiscal Year. Manager will include in the proposed Reserve Fund Work Budget the estimated costs for Reserve Fund Work and will include in the Capital Expenditure Budget the estimated costs for Capital Improvements. The Reserve Fund Work Budget and the Capital Expenditure Budget each will include the method for handling the accomplishment of the work contemplated thereby, any technical assistance needed and its cost, and the estimated schedule for planning, beginning and completing the work. Owner shall give its written approval or disapproval of the Annual Plan not later than thirty (30) days after its submission to Owner. If Owner does not approve or disapprove such Annual Plan within twenty (20) days after its submission to Owner, then Manager may deliver written notice to Owner (with a copy to Owner’s counsel as required by Section 23.12) stating that Owner shall be deemed to have approved the Annual Plan as submitted by Manager if it does not approve the Annual Plan within ten (10) days after the giving of such notice. If Owner does not approve or disapprove such Annual Plan within such ten (10)-day period, then Owner shall be deemed to have approved the Annual Plan as submitted by Manager.